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07-26-2011 CCMMINUTES REGULAR MEETING – HUTCHINSON CITY COUNCIL TUESDAY, JULY 26, 2011 CALL TO ORDER – 5:30 P.M. 1. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Bill Arndt, Chad Czmowski and Eric Yost. Others present were Jeremy Carter, City Administrator and Jody Winters, Assistant City Attorney INVOCATION 2. – Father Jerry Meidl, St. Anastasia Catholic Church, delivered the invocation. PLEDGE OF ALLEGIANCE 3. Mayor Cook mentioned that during the legislative session, the Minnesota legislature passed a tax bill that included a ½ cent sales tax to be imposed by the City of Hutchinson. This local sales tax was approved by Hutchinson voters at the November 2010 election. Both Rep. Shimanski and Senator Scott Newman sponsored the bill that includes this local sales tax. The legislators were in attendance at the Council meeting and spoke of the success of the adoption of the bill and the imposition of the sales tax. The legislators also spoke of the mayor’s work on the bill and his many appearances at the legislature. PUBLIC COMMENTS 4. Robert Anderson, 1545 Adams Street, presented before the Council. Mr. Anderson noted that he is a neighbor to Creekside and expressed that he has no opposition to the request before the Council later in the agenda of Creekside’s request to extend their hours of operation for a two-month time frame. MINUTES 5. (a)REGULARMEETING OF JULY 12, 2011 (b)BID OPENING MINUTES FROM JUNE 29, 2011 (PLAZA 15 PARKING LOT) (c)BID OPENING MINUTES FROM JULY 14, 2011 (PAVEMENT MANAGEMENT PROGRAM) (d)BID OPENING MINUTES FROM JULY 20, 2011 (2011 TRANSVERSE CRACK REPAIR – HUTCHINSON MUNICIPAL AIRPORT) Motion by Czmowski, second by Christensen, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA 6. (Purpose: only for items requiring Council approval by external entities that would otherwise have been delegated to the City Administrator. Traditionally, items are not discussed.) (a)RESOLUTIONS AND ORDINANCES 1.ORDINANCE NO. 11-0673 – AN ORDINANCE AMENDING CHAPTER 94, CEMETERIES, OF THE HUTCHINSON CITY CODE (SECOND READING AND ADOPTION) 2.ORDINANCE NO. 11-0675 – AN ORDINANCE AMENDING CITY COUNCIL AGENDA ORDER TO INCLUDE RECOGNITIONS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR AUGUST 9, 2011) (b)CONSIDERATION FOR APPROVAL OF ISSUING TRANSIENT MERCHANT LICENSE TO RAFAEL JIMENEZ TO OPERATE AN ICE CREAM TRUCK THROUGHOUT THE STREETS OF HUTCHINSON CITY COUNCIL MINUTES –JULY 26, 2011 (c)CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY LIQUOR LICENSE TO SUSTAINABLE FARMING ASSOCIATION ON AUGUST 13, 2011, AT MCLEOD COUNTY FAIRGROUNDS FOR GARLIC FESTIVAL (d) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS -CHANGE ORDER NO. 2 (LETTING NO. 2, PROJECT NO. 10-02 – SHERWOOD STREET SE EXTENSION) -CHANGE ORDER NO. 1 (LETTING NO. 3, PROJECT NO. 11-04 – 2011 PAVEMENT MANAGEMENT PROGRAM PHASE 1) (e)CONSIDERATION FOR APPROVAL OF ISSUING OFF-SALE 3.2 MALT LIQUOR LICENSE AND TOBACCO LICENSE TO KWIK TRIP #316 (f)CONSIDERATION FOR APPROVAL OF AIRPORT AGRICULTURAL LAND LEASES (g)CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 6(a)1, 6(a)2, and 6(b) were pulled for separate discussion. Motion by Arndt, second by Czmowski, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(a)1 had further discussion. Jeremy Carter, City Administrator, noted that a revised ordinance has been put forth to the Council. Additional language has been included to the ordinance which reads, “These provisions shall not apply to the use of flags and markers for graves of veterans during services, or on national holidays.” This language was brought to the attention of staff by the family member of a veteran. Motion by Arndt, second Yost, to approve Item 6(a)1. Motion carried unanimously. Item 6(a)2 had further discussion. Mayor Cook asked that “Community Service” be added to the proposed agenda item, “Recognition of Gifts, Donations and Community Service to the City”. Motion by Arndt, second by Christensen, to approve Item 6(a)2 with the additional language. Motion carried unanimously. Item 6(b) had further discussion. Mayor Cook clarified that the background investigation conducted by Hutchinson Police Services was favorable. Motion by Czmowski, second by Cook, to approve Item 6(b). Motion carried unanimously. – 6:00 P.M. - NONE PUBLIC HEARINGS 7. COMMUNICATIONS, REQUESTS AND PETITIONS 8. (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) UNFINISHED BUSINESS 9. NEW BUSINESS 10. (a)CONSIDERATION FOR APPROVAL OF REVIEW AND ACCEPTANCE OF 2010 FINANCIAL REPORT Jeremy Carter, City Administrator, introduced Kyle Meyers from the City’s financial auditing firm, Abdo Eick & Meyers. Mr. Carter reminded the Council and the public that the City’s 2010 financial report is located on the City’s web site. 2 CITY COUNCIL MINUTES –JULY 26, 2011 Kyle Meyers presented before the Council. Mr. Meyers explained that the 2010 financial statements are in compliance and have been reported fairly. The City’s general fund balance increased approximately $380,000 in 2010. The City’s enterprise funds are also generating good profits. The City’s audit went very well, even taking into consideration the short staffing levels in the finance department. Mr. Carter mentioned that the City’s financial statements will be printed in the Hutchinson Leader in tomorrow’s edition. Mr. Carter explained the make-up of the Liquor Hutch’s financial statement, which shows a snapshot of one day in time with a transfer to the City’s general fund. Motion by Christensen, second by Arndt, to accept 2010 financial audit report. Motion carried unanimously. (b)CONSIDERATION FOR APPROVAL OF PROJECT AWARD FOR PLAZA 15 PARKING LOT IMPROVEMENTS PROJECT (LETTING NO. 5, PROJECT NO. 11-06) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the project includes improvements to the parking lot at Plaza 15 on the east side of the Plaza 15 building. The low bid came in approximately 14% less than the engineer’s estimate. The sole assessing property owner has waived the assessment hearing, therefore the public assessment hearing does not need to be held August 9, 2011. City staff is still working to finalize the conveyance of easement rights within the former Runnings property to the City for the construction of proposed improvements. Motion by Yost, second by Christensen, to approve project award for Plaza 15 parking lot improvements project and waiving assessment hearing on the condition that the conveyance of easement rights be secured. Motion carried unanimously. (c)CONSIDERATION FOR APPROVAL OF ACCEPTING BID AND AWARDING CONTRACT CONTINGENT ON FAA FUNDING FOR AIRPORT 2011 TRANSVERSE CRACK REPAIR PROJECT (LETTING NO. 8, PROJECT NO. 11-11) John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that one bid was received for this project. The engineering consultant and the Airport Commission have provided their recommendation to proceed with the project. This project is expected to be funded with 95% federal funding, with a 5% match by the City from the Airport Construction Fund. With the FAA funding, the City’s contribution will be $5747.00. The grant agreement from FAA is expected to be on the next Council agenda. Motion by Arndt, second by Yost, to approve accepting bid and awarding contract contingent on FAA funding for Airport 2011 Transverse Crack Repair Project. Motion carried unanimously. (d)CONSIDERATION FOR APPROVAL OF RENEWABLE ENERGY PROJECT SUITABILITY REVIEW AGREEMENT WITH WESTWOOD PROFESSIONAL SERVICES Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff has solicited proposals from four organizations to address a potential renewable energy suitability review with respect to specific City sites and applications. Three proposals were received and reviewed by the Resource Allocation Committee. The Committee recommended that staff approach Westwood Professional Services to formalize a scope of work and associated fee amount. Westwood submitted a document identifying the scope of work and statement of qualifications for a preliminary wind and solar analysis. Westwood is proposing to perform the services for the preliminary wind and solar analysis at hourly rates, with a not to exceed amount of $13,000. Staff will be working with Westwood to better identify the scope of work and the hourly rates. Council Member Arndt questioned whether or not the City would be benefiting from implementing such a program. Council Member Yost encouraged staff to minimize the effort of implementing solar power and instead perhaps invest more in wind generation. Motion by Yost, second by Cook, to approve renewable energy project suitability review agreement with Westwood Professional Services. It was noted that funding for this study could come from the 3 CITY COUNCIL MINUTES –JULY 26, 2011 comprehensive planning fund. Roll call vote was taken: Christensen – aye; Arndt – nay; Yost – aye; Czmowski – aye; Cook – aye. Motion carried 4 to 1. (e)CONSIDERATION OF ORDINANCE NO. 11-0674 - AN ORDINANCE ESTABLISHING A TEMPORARY MORATORIUM FOR THE CONSTRUCTION OF PRIVATELY-OWNED WELLS WITHIN THE CITY OF HUTCHINSON AND SETTING A PUBLIC HEARING FOR SEPTEMBER 13, 2011, AT 6:00 P.M. (FIRST READING AND SET SECOND READING AND ADOPTION) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that in 2005, Hutchinson adopted a wellhead protection plan as required by the United States Congress. One of the requirements of the wellhead protection plan is to manage potential sources of contaminants to the City’s water supply. This includes the identification, monitoring and perhaps regulating access to the City’s water supply by private individuals and industrial users. The City does not currently regulate private wells within the city except to the extent that under current ordinances a connection of a private well or wastewater therefrom cannot be made to the City’s water system without proper metering. Staff is proposing that a moratorium be put in place to allow the City time to draft an ordinance to address private wells within the city. The League of Minnesota Cities is also assisting cities with the drafting of such an ordinance. The moratorium would be put in place for one year. Mike Steffl, New London, Minnesota, water well drilling contractor, presented before the Council. Mr. Steffl asked if a study has been done on all the abandoned wells located throughout the city. Mr. Exner noted that the City is aware of approximately 600 abandoned wells within the city. Mr. Steffl expressed that the freedom of choice for residents is being taken away. Current well users are still able to use their wells during the moratorium period. A public hearing on this topic will be held September 13, 2011, at 6:00 p.m. Motion by Czmowski, second by Cook, to approve first reading and set second reading and adoption of Ordinance No. 11-0674 for August 9, 2011. Motion carried unanimously. (f)CONSIDERATION OF ORDINANCE NO. 11-0676 - AN ORDINANCE SUSPENDING ENFORCEMENT OF HUTCHINSON CITY ORDINANCE 92.18 PERTAINING TO HOURS OF CONSTRUCTION DURING THE SCHOOL ROAD CONSTRUCTION PROJECT (FIRST READING AND SET SECOND READING AND ADOPTION) Kent Exner, City Engineer, explained that the contractor on this project has not made a specific request to extending hours at this time. Mr. Exner noted that there is not foreseen to be much, if any, “after-hours” work, however, because of the project beginning late in the season, the contractor would like to have some flexibility. Mr. Exner is asking that a condition be placed on the ordinance that extension to the hours be approved by city staff. Motion by Arndt, second by Christensen, to approve first reading and set second reading and adoption of Ordinance No. 11-0676 for August 4, 2011, with the additional language adding the condition that there must be staff approval and setting special meeting for August 4, 2011, at 4:30 p.m.. Motion carried unanimously. (g)CONSIDERATION OF ORDINANCE NO. 11-0677 - AN ORDINANCE SUSPENDING ENFORCEMENT OF HUTCHINSON CITY ORDINANCE 92.18 PERTAINING TO HOURLY RESTRICTION OF CERTAIN OPERATIONS (FIRST READING AND SET SECOND READING AND ADOPTION) Jeremy Carter, City Administrator, asked that this ordinance be considered at the special meeting on August 4, 2011. Creekside is behind schedule on screening finished product due to the inclement weather that has been had this spring/summer season. Positive feedback from the neighbors has been received to these extended hours. Motion by Arndt, second by Christensen, to approve first reading and set second reading and adoption of Ordinance No. 11-0677 for August 4, 2011. These screening operations will cease at 6:00 a.m. on Saturday 4 CITY COUNCIL MINUTES –JULY 26, 2011 and begin again on Monday morning. Motion carried unanimously. GOVERNANCE 11. (Purpose: to assess past organizational performance, develop policy that guides the organization and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process items.) (a)RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM JULY 14, 2011 (b)PIONEERLAND LIBRARY BOARD MINUTES FROM MAY 19, 2011 (c)HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM MAY 17, 2011 (d)CREEKSIDE RENEWABLES ADVISORY BOARD MINUTES FROM APRIL 6, 2011 (e)CITY OF HUTCHINSON FINANCIAL REPORT FOR JUNE 2011 (f)CITY OF HUTCHINSON INVESTMENT REPORT FOR JUNE 2011 Mayor Cook commented that the cemetery’s fund is already at 92%. Jeremy Carter will report back on that fund’s activity. MISCELLANEOUS 12. Mary Christensen – Council Member Christensen commented on the sad news of the closing of the Birchwood Hospice House. Council Member Christensen also commented on the River Song music festival being held this weekend. Bill Arndt – Council Member Arndt commented on the Allis Chalmers event held this past weekend and what a huge benefit it brings to the city. Eric Yost – Council Member Yost encouraged individuals to speak with Dr. Mulder on the closing of the hospice house. Jeremy Carter – Mr. Carter mentioned that the ConnectCare offices, currently located in the basement of the Birchwood hospice house, will be looking at relocating and asked that the city allow them time to do so. Mr. Carter also mentioned that perhaps a workshop should be set to discuss the 2011 general fund budge. Motion by Arndt, second by Christensen, to set a general fund budget workshop on August 4, 2011, at 5:00 p.m. following the special meeting. Motion carried unanimously. Mr. Carter also noted that he has received questions inquiring whether or not town hall budget meetings will be held this year like they were last year. He asked the Council to consider this. Kent Exner – Mr. Exner noted that the Hwy 15 water main lining project will be proceeding and will begin on August 1, 2011. Mr. Exner also reminded the Council of the Hwy 15 Coalition meeting tomorrow at 2:00 p.m. at the City Center. Mayor Cook – Mayor Cook thanked staff on storm damage clean up and street repair. ADJOURN 13. Motion by Arndt, second by Czmowski, to adjourn at 7:05 p.m. Motion carried unanimously. 5